Condo Living Made Easy

Voting is the cornerstone of governance in condominium, homeowner (HOA), and townhome community associations. It empowers residents to shape their communities by electing board members, approving budgets, amending governing documents, and deciding on capital improvement projects. However, to ensure a fair, transparent, and legally compliant process, board members and property managers must navigate several considerations.

1. Key Issues Subject to Voting

Community association members often vote on various critical matters, including:

• Board Member Elections
• Amendments to Governing Documents (e.g., changes to bylaws, covenants)
• Capital Improvement or Addition Projects (e.g., building a playground, renovating a fitness center)

These decisions significantly impact the community's quality of life and financial health, making informed participation essential.

Note that the majority of association business is handled by the board, and not subject to a vote of all owners.

2. Understanding Voting Methods

Associations can employ various voting methods, each with its advantages and challenges:

• In-Person Voting: Traditional and allows for immediate results but may limit participation due to scheduling conflicts.
• Mail-In Voting: Offers convenience but can involve logistical challenges and longer processing times.
• Proxy Voting: Enables absentee members to participate but requires clear guidelines to prevent misuse.
• Electronic Voting: Increases participation and efficiency but necessitates reliable technology and robust security measures.

Board members should assess their community's needs and resources to determine the most appropriate voting methods.

3. Meeting Quorum Requirements

A quorum—the minimum number of members required to conduct official business—is essential for validating votes. Quorum requirements are typically outlined in the association’s governing documents, such as bylaws or covenants. Failure to meet quorum can delay decisions and necessitate additional meetings, affecting the association's efficiency. Board members should familiarize themselves with these thresholds to plan and manage voting procedures effectively.

4. Determining Voting Eligibility

Voting is dependent on ownership status - individuals not on a deed cannot vote (though they may be appointed as a proxy by an owner for the purpose of voting on a particular matter. Associations typically stipulate that only one vote per unit is allowed, regardless of the number of owners. As an example, co-owners of a unit must decide among themselves who will cast the vote. Maintaining accurate records ensures that only qualified members participate, preserving the integrity of the voting process.

5. Ensuring Transparency and Proper Recordkeeping

Transparent voting processes and meticulous recordkeeping are vital. Associations should: Keep detailed records of voting results, including ballots and proxies. Implement secure storage solutions for both physical and electronic records. Establish clear policies for document retention and disposal. These practices not only uphold transparency but also provide a verifiable audit trail if disputes arise.

6. Effective Communication and Adherence to Deadlines

Clear communication about upcoming votes, deadlines, and procedures encourages member participation and ensures compliance with legal requirements. Boards should provide timely notices and detailed instructions, allowing members to make informed decisions.

7. Leveraging Technology for Efficient Voting

Incorporating technology, such as electronic voting platforms, can streamline the voting process, increase participation, and reduce errors. However, associations must:

• Ensure their governing documents permit electronic voting.
• Implement secure and user-friendly platforms.
• Provide training and support to members unfamiliar with the technology

By embracing technological solutions thoughtfully, associations can enhance engagement and operational efficiency.

Voting is a fundamental aspect of community association governance, enabling residents to have a say in decisions that affect their daily lives. By understanding the key considerations outlined above, board members and property managers can facilitate fair, transparent, and effective voting processes, fostering a more engaged and harmonious community.

Partnering with Haus Financial Services, LLC can help your board ensure that they are addressing voting properly and have provided proper notices and ballots. HausFS focuses heavily on legal compliance for its small condo and HOA clients and provides supportive services to ensure voting is done correctly.

For more detailed guidance on voting in community associations, refer to the full article by Kovitz Shifrin Nesbit: Voting in Community Associations: Seven Considerations for Board Members.

Managing a condominium community brings its share of challenges, one increasingly common issue is the rise of cannabis use. With shifting state laws and unchanged federal restrictions, boards need to stay informed to ensure smooth community living.

Although many states now allow medical or recreational cannabis, it remains a controlled substance at the federal level. This creates a legal gray area that boards must navigate carefully. To address this effectively, associations should review their governing documents; such as declarations, rules, and smoking policies, and consult with legal counsel to ensure compliance with current laws and fair enforcement practices.

Crafting cannabis-related policies that are both enforceable and community-sensitive is critical. Popular approaches include prohibiting smoking in common areas like hallways, clubhouses, and pool decks. Nuisance concerns, such as smell and noise, are heightened in close quarters, so clear language in policies is essential to protect residents and prevent disputes.

Boards must strike a thoughtful balance between respecting medical cannabis users, while maintaining a clean, healthy environment for all residents. That means avoiding blanket bans that could conflict with disability accommodations under federal law, while upholding rules around odor control and peaceful enjoyment of common spaces.

To summarize, here are a few points for boards to consider to create a successful cannabis policy in a community association:

• Legally sound: aligned with both state laws and federal obligations.
• Clearly defined: especially regarding smoking, nuisance, and cultivation.
• Enforceable and fair: considering individual needs and overall community wellbeing.

Tip: Work with experienced legal counsel to tailor policies that match your association’s values and needs.

Managing complex policies and sensitive issues like cannabis use requires both legal clarity and streamlined financial operations. Haus Financial Services specializes in supporting small condo associations (20 units or less) with tailored financial and administrative solutions that bridge the gap between DIY and full-service management. From basic financial administration to supplemental services and new-association support, they help boards navigate complex policies—such as cannabis use—with clarity, efficiency, and stability. Our team’s expertise ensures compliance, smooth operations, and a harmonious community. Keep your building well-managed and your residents happy, contact the HausFS team today.

When it comes to operating a condominium association in Illinois, one of the most important requirements is ensuring your association remains in Good Standing with the state. For both newly formed associations and long-established buildings, proper incorporation and ongoing compliance with the Illinois Secretary of State’s office are critical to protecting your association’s legal rights and financial health.

Let’s start with defining “Incorporated” and “In Good Standing”. Incorporation in Illinois means that your condo association has filed Articles of Incorporation with the Illinois Secretary of State and is recognized as a not-for-profit corporation. This legal structure gives the association the ability to enter into contracts, own property, sue or be sued, and collect assessments from unit owners.

However, simply incorporating once and forgetting about it is not enough. To remain in Good Standing, associations must file annual reports and keep a registered agent on file. Failure to do so can result in the association being dissolved administratively, which can expose the board to liability and create problems with banking, insurance, or pursuing legal action.

There are a few common reasons why associations lose Good Standing, including:

• Failure to file annual reports with the Illinois Secretary of State.
• Unpaid fees or penalties associated with past due filings.
• Outdated registered agent information, especially after board transitions.
• Misunderstanding incorporation requirements for self-managed associations.

When your association loses Good Standing status, it may be prohibited from initiating legal proceedings—such as collection of unpaid assessments—and may face complications with obtaining loans or renewing insurance policies.

Wondering if your association is in Good Standing? You can check your association’s status online at the Illinois Secretary of State's website. If you’ve fallen out of compliance, steps to reinstate Good Standing may include:

• Filing any past-due annual reports.
• Paying outstanding penalties or fees.
• Updating your registered agent and address.
• Filing for reinstatement, if administratively dissolved.

It’s essential to act quickly, especially if your association is planning a capital project, refinancing a loan, or pursuing legal collections.

The best strategy is to take preventative steps for long-term compliance. As an association, there are a few steps to take to ensure you stay in Good Standing:

• Mark your calendar: Annual reports are due before the first day of the anniversary month of incorporation.
• Assign responsibility: Make sure a specific board member or manager is in charge of handling Secretary of State filings.
• Use a professional registered agent: This ensures continuity even as board members change.
• Conduct periodic reviews: Check incorporation status annually to catch issues early.

If your association is in need of help to navigate the process, Haus Financial Services can assist in navigating the incorporation and compliance process to ensure you're protected and empowered. Whether your association is new or needs help regaining Good Standing, we can file annual reports, act as your registered agent, and provide the financial clarity you need to stay on track.

Contact us today to make sure your condo association is operating on solid legal and financial ground.